Easy and less expensive to establish:
The Northern New York Community Foundation has existed since 1929. Annual costs are minimal.
Private Foundation: Must establish a new organization, which involves legal, accounting and start-up costs.
Tax-exempt status:
Funds share the public charity status of the Northern New York Community Foundation.
Private Foundation: Must apply for tax-exempt status from the IRS and is subject to an excise tax and payout requirements.
Technical expertise:
The Community Foundation provides expertise in the areas of management of gifts and grants, finance and administration. Professional staff is also available to offer advice and counsel related to community needs and grant evaluation.
Private Foundation: Must perform, contract, or hire staff to perform these services.
Annual tax filings and returns:
Component funds of the Northern New York Community Foundation are included in annual tax reporting to the IRS and the NYS Attorney General.
Private Foundation: Must be filed by the private Foundation with required supporting schedules and must report to the state as well.
Investments:
The Northern New York Community Foundation professionally invests more than $43 million. The Foundation currently uses nine investment managers.
Private Foundation: Must research and secure its own investment vehicles.
Maximum tax advantage for cash gifts:
Tax deduction for gifts of cash allowed up to 50% of adjusted gross income.
Private Foundation: Tax deduction for gifts of cash limited to 30% of adjusted gross income.
Maximum tax advantage for appreciated property:
Tax deduction available for full fair market value of appreciated property for up to 30% of adjusted gross income.
Private Foundation: Tax deduction for gifts of appreciated property, both publicly traded and closely held, limited to 20% of adjusted gross income and the donor’s cost basis.